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Each morning, we observe our cash balance. If the cash balance is low, we move funds into the cash account from an interest bearing account. If the cash balance is high, we move funds out of the cash account. There are random cash inflows and outflows during the day. The question is: Given the cash level at the beginning of the day, how much cash should be transferred? The question is answered by formulating it as a Markov Decision problem.

Objective of Optimization:
The objective is to determine Optimal Cash Balance via Markov decision Model,by minimizing the average cost.